Groupon - Section 75 and Chargeback Query

Gazzer

I recently asked my credit card company to raise a chargeback against Groupon for non delivery of what I ordered and it was impossible to get a positive outcome from Groupon.

The credit card company responded stating as there was no "debtor-creditor-supplier" agreement in place they could not raise a chargeback or process it under Section 75. I think it is because Groupon issue a voucher rather than supply anything and that voucher is then redeemed with Groupon's specified supplier. I would have thought that would have created a relationship but I am no expert and would appreciate someone who knows more than I do explaining this in simple terms.

It's not a great deal of money but I would like to understand it better as based on this I will never buy anything from anyone that involves them supplying a voucher to use with a third party. Experience Days sellers spring to mind as another similar type of transaction.

born_again

The above is correct, you paid Groupon for a voucher & received a voucher.

S75 is the same basis, no debtor creditor link.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6669444/groupon-section-75-and-chargeback-query

S75 requires an unbroken relationship between the Debtor (you), the Creditor (your card issuer) and the Supplier (person giving you the goods or services). In this case you have introduced a 4th party which is Group On and your Creditor paid them not the Supplier hence it doesnt work. The only time you could have a valid S75 claim is if GroupOn didnt send you the voucher itself.

Whilst Chargeback doesnt require the same unbroken link its likely to take a similar view, you bought a voucher you got a voucher. Chargeback process is also prescriptive, it only covers a limited number of circumstances and far from the many that people think it does eg a toy that turns up broken would be covered but a toy that turns up ok and breaks on day 3 isnt covered.

What's the actual issue? You say it's non-delivery so do they say the goods were delivered but you havent gotten them? The Courier has said they can't find your address so returned the goods?

Gazzer

Thanks for the explanation. The issue is before I ordered the product the supplier said I would get 4 pieces and when the order came only 1 piece was supplied and whilst I had emails and a confirmation from the supplier both before and after I placed the order that they would supply 4 pieces they never have. As far as Groupon are concerned because the supplier tells them they have fullfilled the voucher they will do nothing even though they also agree I should have received 4 pieces.

As I said it's not a great deal of money and lesson learned, I will never use Groupon in future or anyone that wants to issue a voucher for someone else to supply.

eddddy

Just for completeness, it sounds like there was a breach of contract - so you can persue the supplier for that. It's just that section 75 rules mean that you can't persue the card company as well.

It depends on the precise wording of the contract, but it sounds like you used a voucher to pay for 4 pieces, but the supplier only supplied 1 piece. So the supplier is in breach of contract. (So for example, ultimately, you could make a court claim against the supplier for your losses.)